The best way to learn about something is to see it in action. In this article, I’ll examine the performance of a simple all-ETF portfolio that is actually a part of my wife’s account at Scottrade. I convinced her to devote $30k to this portfolio in September of last year and have been tracking its …
This article deals with the Modern Portfolio Theory (MPT), the scientific theory behind asset allocation. Except for geeks like me, it doesn’t make exciting reading, so for those who like sausage but can’t care less about how it is made (talk about bad analogy!) here is a quick excerpt: Volatility refers to the spread in …
The terms asset allocation and passive investing are generally interchangable. There are four basic ingredients: a) determine a mix of asset classes based on investment goals and risk tolerance; b) select the best performer(s) in each class; c) allocate funds to each and HOLD them; d) periodically re-balance and re-adjust asset mix as investment goals …
Before I go any further, I want to remind you that I’m not a professional financial advisor, and you should just take any of my advices AS IS. Check the details in my disclaimer. There are many questions that one should ask before investing. And hopefully, this post can let you start on the necessary …
At 30s to 50s, if you have put in some efforts in saving up a nest egg, you probably will have an okay to decent size of money, depending on your saving rate and age. At this stage, you probably should start constructing a picture of your networth & portfolio, if you have not already …
Once you create your wealth by having a good job or owning a business, and start to have money coming in, you can then slowly build your wealth by accumulation. The primary vehicle to accumulate a substantial wealth is obviously through savings. Yes, through savings. You may not want to believe it. But the old …
As of last Friday on June 9, 2006, my networth & portfolio looks like this: Category Net Value Control/Leverage My Company 18.4% 80.3% My Home 20.9% 29.8% Stocks/Cash 60.7% 60.7% For the explanation of why the percentage numbers don’t sum up to 100% in the column of Control/Leverage, please read my post A Different Percentile …
